Deutsche Telekom has announced it's completing its acquisition of T-Mobile Czech by buying the roughly 40 percent of shares it does not yet own. It said the deal would mean a simplification of governance structures.
The German telecommunications giant said February 10 that it was acquiring all remaining shares of T-Mobile Czech Republic in a deal worth 800 million euros ($1.1 billion).Deutsche Telekom
added it was purchasing the 39-percent stake in question from a consortium of investors led by funds managed or advised by private equity group Mid Europa Partners. The latter said the transaction would be completed by the end of February and was not subject to further regulatory approval.
Telekom argues the complete takeover was a natural step to full ownership of what was already a fully consolidated and controlled subsidiary.
"The acquisition of the remaining stake is a logical step towards optimizing our portfolio and supports our ambitions to become the leading pan-European telecom service provider," Deutsche Telekom Europe chief Claudia Nemat said in a statement.
The company added the deal would enable a simplification of T-Mobile CZ's capital operations andgovernance structures
, while also providing benefits such as saving dividend payments to minority shareholders.
Deutsche Telekom has built up a base in many Eastern European nations, bringing together the large region's landline and mobile telephony operations. Last November, the German group bought the Warsaw-based telecom company GTS Central Europe, a provider of fast Internet connections and operator of data centers also in the Czech Republic.
hg/ipj (AP, Reuters)